With regards to disconting prices, I have been told that they can indeed do it but they really try not to for a number of reasons. First, it pisses off buyers who paid more for the same house in earlier phases. Second, builders negotiate prices for upgrades and get good deals due to the volume of business. $25,000 in upgrades will actually only cost the builder, say, $15,000, making it a better approach than slashing prices. Third, options don’t appear in comps but a discounted house price does. Over time, this lowers all of the home prices, including phases that are not yet built.
If I were your friend, I would demand a lowered price plus incentives. Are there any homes that are built or being built that are not sold yet? They really up the incentives on unsold inventory, including price reductions and many times options are already included. EG: The builder will add granite and tile floors even though it is unsold knowing it will be easier to sell that way. Find out when Shea’s fiscal year ends; they will be in a rush to close as many homes as possible to make the year look better for stockholders. For many companies, December is the date! If your friend has 20% down and is non-contingent, they should be salivating to get her business.
Note: If this is the Calico Bluffs development in Old Creek Ranch, I do not think that is considered San Elijo Hills. It is right next to it though.
